Cogito Ergo Non Serviam
EU Proposes Huge Covid Rescue Fund
The Covid outbreak has exposed the shortcomings of several nations. China's lack of transparency allowed the virus to spread in the early days and become a pandemic. America's healthcare system appears unable to continue as a for-profit industry without massive government support, and a segment of the American people seem unable to engage in civic responsibilities of the smallest kind. Europe is facing a challenge to its free market and coordination of policies. In an attempt to address the latter, the EU is planning to raise €750 billion on its own, rather than through national governments, and steer the money to the neediest countries. This is a radical change from previous practice and may alter the nature of the EU permanently.
"We either all go it alone," said European Commission President Ursula von der Leyen, announcing the plans in the sparsely-filled hall of the European Parliament, "or we walk that road together, we take that leap forward, we pave a strong path for our people and for the next generation."
The Washington Posts states, "The E.U. Plan would offer $605 billion in the form of grants to struggling countries. The remainder would be in the form of loans with strings attached, which would mirror more closely measures of the past."
The austerity European nations (Germany, the Netherlands, Austria, Sweden and Denmark) have long opposed the mutualization of debt. Their argument is that their taxpayers are under no obligation to bailout the profligate nations elsewhere in the EU. Thus, Greece was forced through a decade of economic hell when the austerity nations could have saved the entire community the lost years with a transfer of funds.
What has changed is the mind of Angela Merkel. She has realized that Germany's position in the world depends on a strong EU and that the current unpleasantness threatens the project in ways even the Greek financial crisis could not.
"It was a question of the survival of the European Union," said Wolfgang Ischinger, a former German ambassador to the United States. "This is not simply a gift which we give away because we like our neighbors so much," Ambassador Ischinger said. "It's about assuring the survival of the European project to which Germany has now been attached to for the last 70 years. Our political future. And we're not going to let that fall apart."
The deal is not done. The Germans have bolted from the austerity camp, but the others in that bloc have yet to be convinced. Slovakia and the Czech Republic have seen the virus fade within their borders, and their leaders are questioning why other nations that did not manage as well should be saved from their own ineptitude. Nor do all Germans agree.
"It's not the right way," said Klaus-Peter Willsch, a German Christian Democratic lawmaker who has become one of the most vocal critics. "There will be no end to it. There's always something special to do, there will be a flood, there will be a hot summer, there will be no way to close that door again."
He is right. Europe must either grow closer together or move farther apart. Failure to approve this arrangement will create a more nationalist Europe. The EU exists to prevent that. If it isn't this deal, it will have to be one much like it.
© Copyright 2020 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Ubuntu Linux.
|
|
|
